1. Field of the Invention
This invention relates to an automated system for generating, processing and monitoring signature guarantees on transfers of securities. In particular, the invention relates to an automated system and process for guaranteeing security transfers by issuing customized medallions to guarantors who guarantee the transfer by affixing that medallion to the security.
2. Prior Art
Automated or computerized business systems are known. For example, U.S. Pat. No. 5,497,317 discloses a device and method for improving the speed and reliability of security trade settlements through the use of computer databases connected to communication means, and transmitters for relaying broker instructions and account information in the databases to receivers for settling a securities trade.
U.S. Pat. No. 5,502,637 discloses a computerized investment research delivery system that comprises a host for receiving investment research, a transmitter for transmitting the research to a remote database, and means for deleting information that has been stored for a long period of time.
U.S. Pat. No. 5,535,407 discloses a host computer for managing customer data and a plurality of interconnected processors for receiving the data and transmitting updated data back to the host computer. All of these known systems disclose the use of computers connected to a communication means with other databases or processors for the transmission of data between the different systems.
Thus, the use of computerized communication systems for business transactions is known. However, none of the prior art discloses a system using a computerized database with a communication system for managing a signature guarantee program for authenticating security transfers. Such a program is necessary to facilitate the efficient transfer of securities from one owner to another.
Previously, all signature guarantees were authenticated by several separate entities, in a haphazard and decentralized manner. In addition, all signature guarantees were performed manually, utilizing signature cards on file at each guarantor company and register with each transfer agent, thus requiring excessive time and effort on behalf of the transfer agents in the authentication process. In addition, manual authentication increases the risk of errors in the system. It is thus desirable to have a single, centralized program that efficiently processes all signature guarantees in an easy manner, and which also ensures reliability at all stages of the transfer process. With a qualified process and system, the entire process could be bonded and insured to protect the vital interests of all capital market participants against fraud, criminal acts and infidelity of guarantors and their employees.